New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-09-21
RoyDS ayD SPECULATION

Secretary Fairchild has been urged with
great solcmnily by prominent bankers ana
other citizens, during the past week, to give
relief to the money market by large purchases
Of bonds. without being too particular us 10
the price. 1t is candidly admitted that such
ourchascs would start "A strong rally In the
stock and other speculative markets, and the
Secretary is aware that this explains inc
motive Of some who appeal to nIln.s Dul ulcrc
* real want of lOanaDle funds Ia COMMERCIAL
circles. and the most legitimate trade as wen
rs some branches of productive INDUSTRY are
Enthusiastically embarrassed by lack vi avail
able resources.
The difficulty is that the speculative force
i IKE expanding steam in boiler safe when
confined. perilous only when suffered TO get
hcyond restraint. That strong rally "ouid
Immediately follow any expansion oy tho
Treasury is admitted, and the secretary u
perlectly aware that, with higher prices ior
stocks grain, provisions, cattic ana ouicr
objects OF speculation, more money wo'ua DC
required to carry and TO handle the same
quantity Of supplies. Moreover The supplies
,yould rapidly increase. Securities amount
ing to many millions are waiting 20 be tfoated
ON the first speculative wave. Wheat exceed
ing 2OO.OOO,OOO bushels is for sale, in
cluding old stock. and a crop of cotton worth
$500 OoO,0 and great quantities of other
products. There have been built this year
about 1000 miles of railroad, and houses
stores and other structures costing several
hundred millions. which somebody would like
20 sell at good figures The quantity of real
estate which could be bought this day ut
prices called "l0w,r because not SO high as
those paid three months or SIX months ago.
is largo enough to keep several mints IN opera
ton supplying the needful cash. If all these
spcculatons suddenly talse a new start, how
much money will they absorb ?
Secretary Fairchild should understand that
no financial relief. but only more pressure
with final collapse. lies that way He did not
help business, but speculation. when he rap
idly inflated the currency last year. III he
puts out ten, twenty, or even hlty millions
now, every dollar that il could get would be
absorbed BY speculation, and the needs OF
legitimate trade might be in no respect better
supplied than they are now. If the Secretary
could loan or pay direct to merchants or
manufacturers, and not to the holders OF
bonds that would be another matter. But
the holders OF bonds are not the merchants
or manufacturers and they are apt to seek
as profitable employment of money as they can
get, and the SPECTATOR will offer higher In
tcrcst than any legitimate operation cln-
This is not good time to initiate again.
because the effects of former unwisc imitation
make money tight. The supply of money in
the country is abundant for all legitimate
needs; it is not large enough to enable bold
operators to buy up the world and all its
crops, or to build in a year all the houses,
stores, railroads, factories and other struct-
ures that will be wanted five years hence.
As for the political side of the question. the
Secretary may be sure that he and President
Cleveland will hear very often Of the price
he may pay bondholdcrs in order to encourage
speculation, and that hearing may not here
after be pleasant to him.